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Denmark has stumbled back into recession, bucking the trend of Scandinavian
countries leading Europe’s economic recovery.

The Danish economy surprised analysts by contracting by 0.5 per cent in the
first quarter, after a drop of 0.2 per cent in the final three months of
2010. Economists had forecast an increase of 0.5 per cent.

Domestic demand slumped by 1.9 per cent on the back of dwindling private
consumption, public spending and investments. Despite the unexpected fall in
output, the Danish Finance Ministry raised its outlook for growth,
forecasting that the economy would grow by 1.7 per cent this year and